Corporate Identification Number (CIN): A Complete Guide

A Corporate Identification Number (CIN) is a unique 21-digit alphanumeric code assigned to companies registered in India by the Registrar of Companies (ROC). This identification number, issued under the Ministry of Corporate Affairs (MCA), plays a crucial role in ensuring transparency and accountability in corporate governance.

In this blog, we will delve into the details of CIN, including its structure, purpose, significance, and the penalties for non-compliance. We’ll also address some commonly asked questions about CIN for better understanding.

What is the Full Form and Meaning of CIN Number?

CIN, which stands for stands for Corporate Identification Number, is a mandatory identifier issued to companies incorporated in India. It applies to the following types of companies:

• Private Limited Companies (PLCs)
• One Person Companies (OPCs)
• State Government Companies
• Companies owned by the Government of India
• Not-for-Profit Section 8 Companies
• Nidhi Companies

Exception:

CIN is not applicable to Limited Liability Partnerships (LLPs). Instead, LLPs are assigned a unique 7-digit LLPIN (Limited Liability Partnership Identification Number) by the ROC.

Importance of CIN

CIN is essential for identifying and tracking company activities from the date of incorporation. Here are its primary uses:

• Company Tracking: CIN helps the ROC and MCA monitor all activities related to the company’s operations.
• Transparency: It provides key details about the company’s registration and incorporation.
• Mandatory Reference: Companies are required to mention CIN on invoices, reports, letterheads, and other official documents.

Example of a CIN

L01631KA2010PTC096843

This unique CIN can be broken down into six segments, each of which provides specific details about the company.

Breaking Down the Structure of CIN

A CIN is a 21-character alphanumeric code divided into six sections:

1. First Character (L/U): Indicates whether the company is listed or unlisted on the Indian stock market.

• L: Listed on the Indian stock market.
• U: Unlisted on the Indian stock market.

2. Next Five Digits: Represents the industry or economic activity category.

• These five digits indicate the nature of the company’s primary business activity, such as manufacturing, finance, or information technology.

3. Next Two Letters: Denotes the state of registration.

• Each state in India has a specific code, such as KA for Karnataka, MH for Maharashtra, and DL for Delhi.

4. Next Four Digits: Indicates the year of incorporation.

• These digits signify the calendar year in which the company was registered with the ROC.

5. Next Three Letters: Reveals the company classification.

For example:

• PTC: Private Limited Company
• PLC: Public Limited Company
• GOI: Government of India-owned Company
• OPC: One Person Company

6. Last Six Digits: Unique registration number issued by the ROC.

• This is a sequential number assigned to the company at the time of its registration.

Abbreviations Used in Section 5:

• FLC: Financial Lease Company (Public Limited)
• FTC: Subsidiary of a Foreign Company (Private Limited)
• GOI: Government of India-owned Company
• OPC: One Person Company
• PLC: Public Limited Company
• PTC: Private Limited Company
• SGC: State Government Company

Usage of CIN

Companies must mention their CIN on various documents, such as:

• Invoices, bills, and receipts
• Notices and memos
• Letterheads
• Annual reports and audits
• E-form submissions on the MCA portal
• Official company publications

Penalty for Non-Compliance

Failure to include the CIN on mandatory documents can result in fines. The penalty includes:

• ₹1,000 per day of default, applicable to the company and its responsible officers.
• Maximum penalty: INR 1,00,000.

Scenarios Leading to CIN Changes

A company’s CIN may change due to:

1. Change in Listing Status: Transitioning between listed and unlisted status.
2. Change in Location: Moving the registered office to a different state.
3. Change in Industry: Switching to a new sector or category of economic activity.